S&P 500 Falls 1.2% as AI Stock Selloff Offsets Broad Market Strength; Nasdaq Drops 2.6%

The S&P 500 fell 1.2% Thursday for its worst session since July, as renewed weakness in AI stocks dragged markets lower worldwide, while the Nasdaq composite tumbled 2.6%. The tech-led decline overwhelmed gains elsewhere, with the majority of U.S. stocks rising and the Dow Jones Industrial Average edging up less than 0.1%. AI shares have been swinging on worries that high interest rates may threaten the sector's boom. Market nervousness also pulled Treasury yields sharply lower, while oil prices jumped on concerns about the war with Iran. The S&P 500 fell 93.74 points to 7,663.43, and the Nasdaq dropped 694 points to 26,008.86. The Dow added 11.89 points to 52,867.98, while the Russell 2000 rose 3.01 points, or 0.1%, to 2,784.03. For the week, the S&P 500 is up 0.1%, the Dow 1.7%, and the Russell 2000 2.3%, while the Nasdaq is down 0.5%.